As problem gamblers get younger, counsellors call for families to intervene sooner

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PROBLEM GAMBLERS GETTING YOUNGER

Counsellors CNA spoke to said that like Peter, those seeking help with a gambling addiction are getting increasingly younger.

They said these tech-savvy addicts are finding it easier to access illegal online gambling sites, and are lured by the promise of quick and easy money.

They mainly bet on sports like football and basketball, and play casino games on illegal gambling websites.

Singapore Pools is the only gambling service provider licensed to offer legal online gambling services in Singapore.

At Arise2Care, which specialises in helping problem gamblers, those the organisation helps can be as young as in their 20s to 30s, said its chairwoman Jolene Ong. They are also starting their gambling activities earlier, she said.

“One of the contributing factors is peer influence. The other one is that all these online platforms give them the convenience to gamble,” she said.

Illegal online gambling sites provide credits so that users do not need to come up with upfront cash, she noted.

Ms Yvonne Yuen from addiction recovery centre WE CARE Community Services – which is also increasingly seeing younger problem gamblers – said that the anonymity the platforms provide is appealing to addicts.

“That gives them even more freedom, or perceived freedom that they could indulge in it (gambling),” she said.

Both counsellors also pointed to easy access via smartphones. Temptations also come in the form of unsolicited text messages offering illegal gambling services, as well as advertisements on gaming and video streaming sites.

This is even as the Gambling Regulatory Authority has blocked more than 3,400 illegal gambling websites

NEED FOR PUBLIC EDUCATION, FAMILY INVOLVEMENT

With problem gamblers getting younger, Ms Yuen called for public education efforts to continue and for schools to play a bigger role in raising awareness about the issue.

People should learn from young that “there’s no such thing as free lunches”, she said.

“They always think of getting free money, quick money, quick bucks, and that’s where the attraction lies.”

Families should also learn to spot the problem early and intervene in the right way, said Ms Ong.

By the time young problem gamblers tell their families of their addiction, they would have typically racked up several debts, she said.

In most instances, the families would jump in to settle the debts, she added. However, given that the addiction has not been resolved, the debts would start to build up again.

“The family members need to be equipped so that they can intervene effectively and sooner, before hell breaks loose,” said Ms Ong.

She said in her organisation’s support group for young addicts, parents are also involved.

In one addict’s case, his parents took away his smartphone and laptop so that he would not be able to gamble online when he is alone in his room, when he would be most tempted.

The counsellors added that making counselling more accessible will also help to better address the issue of problem gambling.

For Paul (not his real name), who started gambling online at the age of 18, an injury escalated his habit.

“I fractured my wrist. I didn’t have the money to seek medical treatment. So that time when I actually first won in online gambling, about S$100 to S$200, I really felt like it was a gift to me. So I started to get addicted.”

Paul racked up huge debts by taking out cash advances on his credit cards, and also borrowed from family and friends to feed his addiction.

Paul eventually took his brother’s advice and sought counselling at Arise2Care, where he got help with a debt repayment plan. He has since recovered from his addiction.

“If I can really go back in time, I won’t even want to touch gambling, and just lead a normal, decent life,” he said.

“At least during the night time, I can sleep peacefully, I don’t have to worry about the debts, and about who will come and harass (me).”

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Sri Lanka to save US billion from bilateral debt deal

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COLOMBO: Sri Lanka will save US$5 billion following the restructure of its bilateral debt, much of which is owed to China, through slashed interest rates and longer repayment schedules, the president said Tuesday. The island nation defaulted on its foreign borrowings in 2022 during an unprecedented economic crisis that precipitatedContinue Reading

BlackRock tasks Yik Ley Chan to lead SEA private credit as demand increases | FinanceAsia

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Global investment giant BlackRock has appointed Yik Ley Chan to lead the firm’s private credit team in an expanded remit for Southeast Asia (SEA). 

Chan (pictured) will be based in Singapore and will become responsible for the origination and execution of private credit investments. The appointment takes effect next month in July, according to a company media release. He will also join the firm’s Asia Pacific (Apac) private credit leadership team. 

Chan has 16 years’ experience in financial services, of which more than 13 years were spent on structuring private credit and financing solutions. He was most recently Asia head of private credit at Jefferies, where he oversaw markets in SEA including Singapore, Malaysia, Vietnam, Indonesia and the Philippines. Yik Ley previously played a senior structurer role for Credit Suisse, covering SEA and frontier markets.

BlackRock’s global private debt platform manages $85 billion across the asset class. The global private debt team has over 200 investment professionals in over 18 cities globally as of December 2023.

BlackRock’s Apac private credit platform currently invests in opportunities throughout Australasia, South Korea, Japan, Greater China, India, and SEA.

Celia Yan, head of Apac private credit, BlackRock, said in the release: “SEA is an exciting region offering promising opportunities for private credit, as corporates look for ways to finance transformation beyond traditional avenues. Yik Ley’s wealth of investment experience and local insights will be of immense value to our clients, while strengthening our investment capabilities throughout developed and emerging markets in Apac.”

Deborah Ho, country head of Singapore and head of SEA, BlackRock, added: “Client demand for private markets investments has increased dramatically – a trend we believe is here to stay.”

For more FinanceAsia people moves click here. 


¬ Haymarket Media Limited. All rights reserved.

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China to defuse its trillion LGFV debt time bomb? – Asia Times

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China’s leadership getting scheduled for later this month could be the catalyst for policymakers ‘ development of a defused US$ 13 trillion time bomb that threatens Asia’s largest economy.

Although China’s home crisis is in the news, debt issues plaguing local governments across the country also call for immediate action.

The recent boom in local government financing vehicles ( LGFVs ) raises questions. For bill, the vast majority of it the off- balance- strip form, now nearly rivals China’s annual&nbsp, gross domestic product ( GDP ).

It’s obvious why international investors are concerned about China’s monetary foundations given the definition drama surrounding the large property developers and the glut of LGFVs, especially in a time of extreme global uncertainty.

With US&nbsp, bond yields staying increased, Japan skirting crisis and Europe walking in position, the second quarter of 2024 is n’t simply fertile ground for China to produce an export boom.

The good news, however, is Xi Jinping’s Communist Party seems ready to tackle the ticking LGFV time bomb. According to local press reports, a long-awaited economic strategy session scheduled for July 15 to August 18 will aim to find a resolution to the enormous debt load.

At the upcoming Third Plenum, Xi’s inner circle is anticipated to permit local governments to retain more of the fiscal funds that currently go to Beijing at the upcoming election. The necessary tax reforms in China’s system could be a significant step in the direction of eradicating one of the most pressing threats to financial stability.

It could also be a vital step toward investing more in high- value manufacturing sectors while stimulating&nbsp, now languid domestic consumption. The issue is that mainlanders save more than they spend because of the lack of social safety nets.

Increased revenues would reduce local governments ‘ dependence on property and land sales to stay afloat and give them more opportunity to invest in innovation and productivity-boosting industries. Additionally, they would lessen debt issuances ‘ appeal.

It’s difficult to overstate how significant a pivot could be. Fixing China’s financial cracks is only one part of the process. The other is building economic muscle that puts China on a path toward growing&nbsp, better, not just&nbsp, faster.

Since the 2008 Lehman Brothers crisis, Beijing has relied heavily on China’s 34 province- level administrative areas to fuel economic growth. Regional leaders in Beijing frequently caught attention even before that by reporting higher GDP figures than the national average.

This accounts for the nation’s infrastructure arms race. Now, the bill for all those ginormous skyscrapers, &nbsp, six- lane&nbsp, highways, international airports and hotels, white- elephant stadiums, sprawling shopping districts and amusement parks is coming due.

Local governments raced to outbuild and outgrow each other to get Beijing’s attention. Photo: Asia Times Files / iStock

“LGFVs played an essential role in funding&nbsp, China’s colossal infrastructure buildout, which has also helped drive up land prices in what was previously a virtuous growth cycle”, notes Henry Storey, an economist at the Lowy Institute think tank. Land revenue provided an ostensibly inexhaustible source of largesse for subsidies in the heady days before China’s real estate collapse.

This growth model was not without its drawbacks, Storey notes”. After decades of bingeing, he says, “LGFV debt comprises&nbsp, well over half of China’s GDP – a totally unsustainable dynamic when median return on assets has hovered around 1 %. Local governments currently invest about 19 % of their total fiscal resources in interest payments.

Over the next few weeks, Xi has a chance for a major reboot. Since taking the reins in 2012 and 2013, Xi pledged to recalibrate an economic model that he said had become “unbalanced, uncoordinated and unsustainable”.

But “despite momentous economic change since, many of the government’s stated ambitions remain the same”, says economist Diana Choyleva at Enodo Economics.

For this “vision of high- quality development” to ultimately be achieved, it will depend on “whether Xi can fully implement” reforms, Choyleva says,

Without the structural changes required to create genuine consumer demand, Choyleva goes on to say that a successful implementation of these supply-side reforms wo n’t be sufficient to put the economy on a sustainable growth path. However, the majority of those are glaringly absent from the discussion.

The weeks to come may provide this missing link and mark one of the biggest adjustments to China’s financial system since the Xi era, if not the last couple of decades. &nbsp, It would also be a major down payment on Xi’s pledges to revamp China’s$ 61 trillion financial sector.

According to Sherry Zhao, an analyst at Fitch Ratings,” We believe local and regional governments will still face challenges in supporting LGFVs due to falling land concession revenue.” Because they have more state-owned assets and financial resources for long-term debt resolution, economically stronger regions are more likely to have higher resilience.

A more active capital market would lessen boom-bust cycles, which would be less volatile. Additionally, reforms would give municipalities more room to put policies into practice so that they can spread the fruits of economic growth.

Analysts concur that significant disruption is required. ” China’s economy is not cratering, but it is definitely running at well below potential, and the government seems reluctant to do what it takes to get it up to full speed again”, says Arthur Kroeber, an analyst at Gavekal Dragonomics.

As ever, it will all come down to implementation. Over the past 13 plus years, Xi has occasionally shown to be more adept at recommending bold reforms than putting them into practice. That may be about to change, though, in foundational ways.

Last week, the party’s 24- member Politburo noted that a “resolution on comprehensively deepening reform and advancing Chinese modernization” will be circulated among the Beijing elite. By 2035, the nation should be transformed into a “high-level socialist market economy.”

According to Haibin Zhu, an economist at Morgan Chase &amp, Co., one reason for reform hope is that, unlike in the past when significant policy pivots were announced, the coming Third Plenum does not coincide with significant changes in top leaders.” This is not the case this time,” Zhu says.

Continuity, economists say, could improve the odds that reforms are implemented.

Xi Jinping, the leader of China, has a chance to fulfill his high-quality growth promise. Image: Asia Times Files / Getty

According to Robin Xing, an economist at Morgan Stanley,” The Plenum will likely support the economic framework that has taken shape in recent years: prioritizing chokepoints in supply chain self-sufficiency and tech innovation.”

Shuang Ding, an analyst at Standard Chartered, expects this month to be a key moment for Xi’s legacy as a reformer. We anticipate that the Plenum will reiterate the party’s support for the expansion of the private sector, a stronger state sector, and the crucial role that the market plays in resource allocation.

More importantly, Ding adds,” we think they’ll take steps to remove cross- region barriers, encourage innovation and green transition, and improve income distribution. Additionally, we anticipate that they will place greater value on security, addressing security risks in the financial and housing sectors, and strengthening supply chain resilience. Potential fiscal and tax reforms, which are crucial for long-term sustainability, will likely receive a lot of attention from the market.

Even though it might not significantly increase GDP in the short run, this latter push may be a game-changer for local governments. In fact, efforts to repair the local government’s finances would cause more economic turbulence in the near future.

According to Xing,” the focus on deleveraging the housing sector and LGFVs continues to put downward pressure on growth and deflation.”

LGFVs have found it much harder to issue bonds in recent months as regulators have made more effort to lessen risks in one of China’s most debated industries.

That “points to the continued regulatory tightening since the fourth quarter last year and we have n’t yet seen any signs of relaxation”, says Laura Li, an analyst at Standard &amp, Poor’s.

” This suggests that it’s increasingly difficult for low- quality, low- rated LGFVs, including those from affluent provinces such as Jiangsu and Zhejiang, to issue bonds in future”, Li added.

However, allowing local governments to keep more tax revenue could have a significant impact on incentives. As economist Jonathon Sine, author of the Cogitations newsletter, explains, Beijing in decades past wanted revenues routed through its own coffers for purposes of control, most importantly over subordinate levels of government and redistribution.

Once you realize that the central government is essentially responsible for the majority of the money, Sine explains. ” Indeed, once transfers are accounted for the oft- cited central- local fiscal gap disappears. Unfunded mandates did occur following the budget reform in 1994, but in a more nuanced way.

Locally generated income is frequently transported from the provinces to Beijing and back again. Photo: Asia Times Files / AFP

However, he claims that the “problem was – and still is – in the nature of the intergovernmental transfer system.” ” Beijing bureaucrats apportion funds to the provinces, who are in charge of apportioning funds to prefectural cities, who are in charge of apportioning funds among county-level units, and who are in charge of apportioning funds among townships,” the phrase goes.

Sometimes, Sine notes,” the provinces send funds directly to the counties, by- passing the cities. Each level also requires its own funds. And each level may take months before passing on the funds it has received. By the time funds get from top to bottom, a year or more can pass”.

China could reduce the effectiveness of the world’s second-largest economy, destabilize distorted incentive structures, and help Xi deliver on his high-quality growth promises by putting an end to this M C Escher-like financial system.

Follow William Pesek on X at @WilliamPesek

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Southeast Asia has its reasons for pivoting to BRICS – Asia Times

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The sudden reversal of Southeast Asia toward the BRICS countries is a major game-changer that some in Washington anticipated.

In recent days, Malaysia extensive its interests to visit Brazil, Russia, India, China and South Africa. Thailand and Vietnam are even interested in joining the Association of Southeast Asian Nations, which is a group of nations.

In Indonesia, there’s growing recognition that Argentina, Egypt, Ethiopia, Iran, United Arab Emirates, Saudi Arabia and another” International South” countries have a place in vying to join this burgeoning international business.

Anwar Ibrahim, the prime minister, made the declaration in an interview with Chinese media prior to Li Qiang’s attend to Malaysia, announcing his intention to re-join the union, which has grown by a whopping 2 % in the last year. That dynamic is luring the Global South countries, primarily because it provides access to funding and a political movement that is unconstrained by Washington’s influence. &nbsp,

Joe Biden, the US senator, might find the South Asian stumbling block particularly troubling. Since the Biden time, a provincial shield has been built to counteract China’s growing influence and attempts to replace the US dollars in trade and finance.

Relationships between the US and some ASEAN people are clearly deteriorating. This, at a time when&nbsp, Saudi Arabia&nbsp, is looking to step out the “petrodollar”. As China, Russia, and Iran square off against old partnerships, Riyadh is intensifying de-dollarization work.

” A gradual reform of the international financial environment may be afoot, giving way to a planet in which more local economies can be used for international purchases“, says analyst&nbsp, Hung Tran at the Atlantic Council’s Geoeconomics Center. The money would continue to be important but without its enormous influence, which would be complemented by currencies like the Taiwanese renminbi, the euros, and the Chinese yen in a way that’s proportionate to the global footprint of their economies.

Tran points out that “in this environment, how Saudi Arabia approaches the consists continues to be a significant predictor of the economic coming.”

Malaysia’s excursion tells the story. Anwar Ibrahim, the prime minister, made a world impact by supporting Western finance. That was in the late 1990s, when Anwar’s liberal tendencies clashed with Mahathir Mohamad’s stances.

Mahathir shut Anwar down. The door was opened to Deputy Premier Anwar, who was afterwards imprisoned. Anwar’s efforts to improve competition and establish equal using fields were even reversed. Capital controls were imposed by Mahathir and Malaysia Inc. were circling the vehicles.

Then it’s Anwar who’s turning away from the Adam Smith- encouraged guidelines he once championed — and toward the&nbsp, BRICS.

” We have made our plan apparent and we have made our choice”, Anwar tells Chinese internet outlet&nbsp, Guancha. The proper process will begin immediately, according to the statement. As far as the Global South is concerned, we are totally supportive”.

Anwar gave a shoutout to Argentine President Luiz Inacio Lula da Silva, who is determined to end the economy’s dominance.

” Last month, Malaysia had the highest expenditure ever, but the money was also attacked”, Anwar explains. ” Well, it has eased in the past few months. But it does n’t make sense, it goes against basic economic principles”.

Anwar documents that the question is: Why? He claims that” a coin that is completely outside the two nations ‘ business structure and useless in terms of economic activities in the country has become prominent merely because it is used as an international money.”

Among the many reasons for Anwar’s ideological reversal is China’s emergence on the global scene, providing a regional growth engine. Another: the” Western narrative” surrounding events like Hamas’s October 7 attack on Israel.

After their meeting in Beijing on March 31, 2023, Malaysian leader Anwar Ibrahim addressed Chinese President Xi Jinping in positive terms. Image: Facebook / Anwar Ibrahim

” People keep talking about October 7, which annoys me”, Anwar says. Do you want to obliterate 70 years of history by repeating one event? This is the Western narrative. You see, this is the problem with the West. They want to control the conversation, but because they are no longer a colonial power and independent nations should be free to express themselves, we can no longer accept it.

In late May, Thailand announced it’s applying for&nbsp, BRICS&nbsp, inclusion in part to boost its presence on the world stage. If approved, Bangkok would likely become the first ASEAN economy added.

According to Nikorndej Balankura, a spokesman for the foreign ministry,” Thailand believes that BRICS has an important role to play in strengthening the multilateral system and economic cooperation between countries in the Global South, which aligns with our national interests.” ” As for economic and political benefits, joining BRICS would reinforce Thailand’s role on the global stage, and strengthen its international cooperation with emerging economies, especially in trade, investment and food and energy security”.

Thailand’s bid, according to Soumya Bhowmick, an associate fellow at the Observer Research Foundation think tank, supports Beijing’s wider strategic objectives of boosting its economic influence in Southeast Asia.

” For China”, Bhowmick notes,” Thailand’s membership represents an extension of its regional influence, complementing its Belt and Road Initiative. This is in line with China’s strategic goals of fostering stronger economic ties and the creation of new infrastructure in Southeast Asia.

The first BRIC grouping was created in 2001 by Goldman Sachs economist Jim O’Neill. The members formally joined forces in 2009; A year later, they added the” S” when South Africa joined. In 2023, the BRICS doubled in size by luring more&nbsp, Global South&nbsp, nations.

Today, BRICS nations account for half the world’s population and two- fifths of trade, including top energy producers and importers. &nbsp, BRICS nations also account for 38 % of global petroleum imports, led by China and India. &nbsp,

The grouping could give the Global South a greater voice in international affairs and challenge the domination of existing institutions, according to Daniel Azevedo, an analyst at Boston Consulting Group.

BRICS , Azevedo adds,” creates a forum that, at minimum, gives&nbsp, emerging markets&nbsp, the opportunity to align on global topics and new opportunities to promote mutual&nbsp, economic development &nbsp, and growth. And it’s evolving steadily”.

Azevedo notes that as the BRICS build political and&nbsp, financial institutions&nbsp, and a payment mechanism for executing transactions,” there are important potential implications for the future of&nbsp, energy&nbsp, trade, international finance, global supply chains, monetary policy and technological research”.

Global companies will need to take these new geopolitical and economic realities into their investment strategies, according to Azevedo. They ought to also improve their ability to take advantage of opportunities and reduce risk.

The BRICS have n’t always demonstrated their viability as a bloc. Five core nations are present, with nothing else in common besides some economists ‘ imagination. The BRICS frequently seem to be focused solely on improving access to China’s rapidly expanding economy and doing little else.

Paul McNamara, investment director at GAM&nbsp, Investments, speaks for many when he observes that the&nbsp, BRICS&nbsp, is still an acronym in search of cohesive economic argument. Would most current global elites care about the BRICS without China at the core, asks McNamara?

As such, says Ian Bremmer, president of Eurasia Group, the “impotence of&nbsp, BRICS”&nbsp, makes joining the group” a low- stakes gambit with some potential upside. It may help Thailand, which is its biggest trading partner and most worrying military threat, win over China. But, if not, what has Bangkok really lost”?

Vietnam traveled to Russia earlier this month to take part in the BRICS summit. According to Deputy Minister of Foreign Affairs Nguyen Minh Hang, Hanoi is eager to collaborate with like-minded developing nations.

At a time when political dysfunction is at its worst, and all this is happening amid deteriorating American finances. As the national debt approaches US$ 35 trillion – on the way to&nbsp, US$ 50 trillion&nbsp, – Biden’s Democrats and Donald Trump’s Republicans are barely on speaking terms.

This is not appropriate for either investing in government funding in the short run or making necessary upgrades to promote innovation and productivity over the long run. Additionally, it implies the threat of a second Capitol Hill insurrection similar to the one that occurred on January 6, 2021.

That event played a direct role in the August 2023 move by Fitch Ratings to revoke Washington’s AAA credit grade. Extreme polarization, explains Fitch analyst Richard Francis, “was something that we highlighted because it just is a reflection of the deterioration in governance, it’s one of many”.

The key is now how Moody’s Investors Service, which still assigns Washington AAA, responds to the chaos caused by Trump’s campaign promises to win back control. And as Biden attempts to overthrow Trump, Biden uses new trade sanctions.

This puts US Treasury securities in a high degree of risk. Japan and China alone have US government debt totaling$ 2 trillion. Any sudden run on the dollar could trigger a fire sale, sending US yields skyrocketing.

The Federal Reserve’s reluctance to lower interest rates as was widely anticipated increases the chance of a policy error in this regard. One of the most well-known Fed errors in history was missing the subprime crisis ‘ level of distress in credit markets in 2007.

As Fed Chairman Jerome Powell’s team prolongs the “higher for longer” era for yields, developing economies are increasingly in harm’s way. That’s especially so as the dollar’s surge hoovers up global capital.

These worries fall under the umbrella of the broader BRICS’s plan to pool more than US$ 100 billion in foreign currency to absorb financial shocks. Members can use the funds in emergencies, preventing them from visiting the International Monetary Fund. Since 2015, the bank that the BRICS created has approved tens of billions of dollars of loans for infrastructure, transportation and water.

The&nbsp, BRICS currency &nbsp, project has been gaining traction since mid- 2022, when the 14th BRICS Summit was held in Beijing. Vladimir Putin, the president of Russia, stated there that the BRICS were developing a “new global reserve currency” and were willing to expand its use.

Brazil’s Lula&nbsp, also has thrown his support behind a BRICS monetary unit. Why ca n’t a bank like the BRICS bank use a currency to finance trade between Brazil and China, as well as Brazil and all other BRICS nations? he asks. Who made the decision to use the dollar as the reserve currency following the end of gold parity?

President of Brazil, Lula da Silva. Photo: Editora Brasil 247

Fernando Haddad, Lula’s finance minister, has been making a point about the more prevalent use of local currencies in bilateral trade instruments like credit receipts. The focus, he says, must be phasing out the use of a third currency.

The benefit is that trade transactions are resolved in the currency of a non-membership-based nation, he claims.

Economist Vikram Rai of TD Bank points out that” there is great potential for regionally dominant currencies and a multipolar international regime to emerge,” with the roles being “filled now by the dollar shared with the euro, a more open yuan, future central bank digital currencies, and possibly other options we have yet to see” within the next ten or two.

Analysts at Moody’s warn that the Americans going overboard on tariffs, concerns about default and weakening institutions are threatening the dollar ‘s&nbsp, reserve currency status.

” The greatest near- term danger to the dollar’s position stems from the risk of confidence- sapping policy mistakes by the US authorities themselves, like a US default on its debt for example”, Moody’s argues. The dollar’s global role is threatened by weak institutions and a political pivot toward protectionism.

It’s difficult to believe that America could lose much more than just the economic plot as Southeast Asia increasingly leans toward the BRICS.

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China mulls tax, fiscal reforms as land sales fall – Asia Times

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Next month, the Chinese government is expected to release taxes and fiscal reforms that will allow local governments to look into fresh tax sources to make up for lost property sales revenue. &nbsp,

The reforms may become announced during or after the Chinese Communist Party’s next plenary session of the latest Central Committee’s 2022- 2027 name.

The Second Plenum typically sets the program for China’s economic plan for the long term, which is attended by about 200 CPC Central Committee members and 200 officials and military leaders every five years. It was supposed to have taken place in November, but it was postponed, allegedly as a result of a summertime officers change at the Ministry of Defense and the Ministry of Foreign Affairs.

( Many outsiders are unfamiliar with the Chinese Communist system of government. ) A CCP National Congress is held every five times and draws 2000 people together. The last one occurred in 2022, in October. Then the central committee ( 200 people ) holds the First Plenum. In the next month, there are the Second and Third Plenum on peronnel and financial issues, both. They are followed by the Fourth, Fifth, Sixth and Seventh Plenum and then the cycle begins anew with the next Central Committee’s installation. )

Recently, the nation’s future income and fiscal reforms have been covered in state media. Instead of relying heavily on home activities, they claim the Chinese market will concentrate on boosting local consumption and high-value manufacturing in the coming decade. &nbsp,

Local governments were criticized by the National Audit Office for failing to properly apply the key government’s macroeconomic policies in a report released on Tuesday. It recommended that regional governments put more effort into tax collection, expense control, support of state-owned businesses, and regional debt risk management.

In the first five months of this year, local governments ‘ revenue from land sales fell 14 % to 1.28 trillion yuan ( US$ 176 billion ) from the same period of last year, according to the Ministry of Finance. &nbsp,

Next month, China’s area sales revenue plummeted to 5.8 trillion yuan from the 2021 apex of 8.7 trillion renminbi. &nbsp,

The decrease in land sales typically occurs after a decline in home purchases, according to Luo Zhiheng, president of Yuekai Securities ‘ Research Institute. He claimed that such circumstances will eventually adversely impact local governments ‘ land sales, which could drop by 1.1 trillion yuan or 19 % to 4.7 trillion yuan in 2024 from last year. &nbsp,

Consumption income

In a statement released on June 19, Goldman Sachs reported that China might be considering changing its second plenum’s consumption taxes. &nbsp,

Instead of collecting the tax from exporters and importers, the Chinese govt is anticipated to enhance its consumption tax base and increase prices. The regional governments may receive a portion of the revenue from the central government.

Last year, the central government raised 1.6 trillion yuan in consumption taxes, which is generally levied on marijuana, delicate oil, cars and alcohol. The tax represents about 9 % of the country’s total tax revenue. &nbsp,

Reuters reported on June 22 that the upcoming revenue reform will help local institutions keep more of their tax dollars to help them with their debt issues. It claimed the move will help address a decades-old tax revenue imbalance because local governments ‘ fiscal revenues made up 54 % of the country’s total but their expenditures made up 86 %.

Caixin.com added that China will try to increase total tax profits while lowering the stress on companies in an essay published on Monday. It said local governments may reduce rely on the main government’s money.

In a statement at the side’s monthly Central Economic Work Conference last December, CCP General Secretary Xi Jinping stated that a fresh round of governmental and tax reform was necessary to support China’s high-quality growth and development. &nbsp,

Dismissing stories

On March 24, Finance Minister Lan Fo’an announced that his administration would support the development of the country’s corporate initiatives involving development, technological improvements, and future business. &nbsp,

But on March 28, the Finance Ministry in a speech urged the central government’s departments and local governments to cut costs for officials ‘ foods, trips, travel, meetings and events while spending more on strategic initiatives. &nbsp, &nbsp,

Meanwhile, the public’s attention has fallen on the government’s recent efforts to collect outstanding taxes from businesses. &nbsp,

Different listed companies have reported that the State Taxation Administration has told them to pay taxes they have missed for decades over the past few months. According to media reports, the requested amount ranges from several million to fifty million yuan per company. &nbsp,

Some internet users claimed that the central government wants to review and recover the unpaid taxes from the previous 20 to 30 years. They also cited the recent establishment of special teams under local governments ‘ police forces to collect outstanding taxes. &nbsp,

The State Taxation Administration stated on June 18 that it had no idea how to “review tax payments for the past three decades.” In fact, local governments set up their tax enforcement teams in order to comply with a 2016 policy, it claimed, adding that citizens should n’t spread rumors.

It’s good for the State Taxation Administration to clarify, according to a columnist for the Jinan Daily Newspaper Group. However, he added that officials should always explain their policies, as any miscommunications will harm people’s confidence in the Chinese economy. &nbsp,

Read: Analysts: China’s property stock surge unsustainable

Follow Jeff Pao on X: &nbsp, @jeffpao3

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Sri Lanka signs debt deal with creditor nations in Paris

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Sri Lanka’s president’s office announced on Wednesday ( Jun 26 ) that it had reached a deal with creditor nations to restructure about US$ 5.8 billion in bilateral debt, in a move that would help stabilize its hit-crisis-hit economy. The Official Creditor Committee ( OCC), which is co-chaired by Japan,Continue Reading

Foreign condo ownership policy “conflict of interest”

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PUBLISHED: 25 Jun 2024 at 12: 45

Foreign condo ownership policy 'conflict of interest'
At a home and property good in Bangkok in March, visitors can look at building programs and models. ( Photo: Varuth Hirunyatheb)

A custodian senator warned that the government’s plan to allow up to 49 % of condo building products to be owned by foreigners could cause conflict of interest and stifle the prime minister’s office.

Somchai Swangkarn wrote on Twitter on Tuesday that there might be a conflict of interest as a result of the government’s plan to increase the percentage of foreign ownership of condominiums and expand the leasehold period for overseas properties from 50 to 99.

Home owners who have connections to government ministries, including Srettha Thavisin, would gain from it.

Mr Somchai said listed property developer Sansiri, a key person in the business, was owned by Mr Srettha’s home.

The custodian senator wrote that any government choice regarding foreign ownership of condominiums and property leases may be regarded as a conflict of interest, which was against the Constitution and against the Organic Act on Anti-Corruption.

Anutin Charnvirakul, the cabinet’s inside minister, reported last week that the plan had been ordered to be examined. It was not on the pantry plan for this week’s meeting. The policy’s benefits and drawbacks were being considered by the Land Department.

He claimed that the government needed to boost the economy and that the modifications that were suggested would certainly benefit entrepreneurs. The freedom of Thai individuals would become protected, along with the monetary stimulus, Mr Anutin said.

Sopon Pornchokchai, chairman of the Agency for Real Estate Affairs, said house rent times for immigrants were limited at 50 times in Cambodia, China, Myanmar and Vietnam, 30 years in Indonesia and 60 years in Singapore.

The proportion of foreigners ‘ ownership of condominiums was capped at 30 % in Vietnam, 49 % in Indonesia and 50 % in Malaysia, he said.

The coverage of the state posed the risk of international crime, money- laundering, financial manipulation and to regional security, he said.

Mr. Sopon also suggested that the government should set a minimum condominium purchase price of 10 million baht so that Thais with low and middle-class incomes can also purchase them.

In contrast, international consumers should be prohibited from selling purchased condos for three decades, to hinder speculation, he said.

Local home business professionals have been&nbsp, pressing for a change&nbsp, in the international rights cap, saying demand from foreign purchasers is on the rise.

Additionally, regional clients ‘ higher levels of household debt and tighter lending policies have been having an impact on the demand for homes. As a result, programmers have become more careful.

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